Best mortgage deals for buy-to-let investors

Many people are looking towards the property market as they seek higher returns than those offered by traditional savings accounts and other forms of investment.

Buy-to-let investors often to get mortgages on an interest-only basis, though capital repayment options are available if that is appropriate for your circumstances. Remember while property prices have risen in the last few years, there is no guarantee that values will keep increasing.

You can compare buy-to-let mortgages using current property prices, deposit size, repayment periods and loan to value (LTV) ratios using the Moneywise mortgage comparison tool.

Our roundup of the best deals is based on someone borrowing on an interest-only basis against a £250,000-property for 20 years. Our buyer is paying all fees upfront.

Get help finding the best buy-to-let mortgage deals

75% LTV

There are a range of options for borrowers with a 25% deposit with rates at historic lows, here are Moneywise's top buy-to-let picks this week.

Post Office, up to 75% LTV, 1.98%
Fixed until 30 April 2019 then reverts to SVR (currently 4.74%)

The Post Office has the cheapest two-year fixed rate deal charging interest at 1.98% with an upfront product fee of £1,305. Monthly interest only repayments are £309 for the first two years, an annual cost of £4,365. Once the fixed rate expires the SVR of 4.74% kicks in.

HSBC, up to 75% LTV, 2.79%
Fixed until 30 June 2022 then reverts to SVR (currently 4.75%)

HSBC comes out top of the five-year fixed rate deals. This has a headline rate of 2.79% until April 2022. Monthly repayments are £436, representing an annual cost of £5,670. The fees here are a hefty £2,196.

Godiva Mortgages, up to 75% LTV, 2.39%
Variable for term

If you’re willing to take your chances with a variable rate mortgage then Godiva will charge 2.39% for the mortgage term. There is a product fee of £1,999 and monthly payments of £373 – equivalent to £4,593 per year. Godiva Mortgages are only available through a mortgage broker.

60% LTV

Deals are slightly more attractive with a 40% deposit, with many rates available for well under 2%. You’ll need to remember to factor in the upfront fees, which in some cases makes the total cost much more expensive. 

Platform, up to 60% LTV, 1.69%
Fixed until 30 April 2019 then reverts to SVR (currently 5%)

This deal lends at 1.69%, fixed until April 2019, meaning it’ll cost £211 per month to borrow £150,000. However, borrowers will need to pay £928 in up-front fees, so the annual cost is £2,999. Remember Platform products are only available through a mortgage broker or financial adviser.

Platform, up to 60% LTV, 2.44%
Fixed until 30 April 2022 then reverts to SVR (currently 5%)

For a longer fix, this 2.44% rate is guaranteed until April 2022. The total monthly cost is £305 per month, meaning the annual total is £3,996. Borrowers must pay up-front fees of £1,678 with this product.

Leeds Building Society, up to 60% LTV, 1.85%
3.89% discount for two years then reverts to SVR (currently 5.74%)

Leeds Building Society comes out on top of the variable deals. This rate is 3.89% below the mutual's standard variable rate for two years, before reverting to 5.74%. Repayments are £231 per month with £199 fees. That’ll cost £3,055 per year.

Free expert mortgage advice service
- L&C will compare, advise on and arrange the best mortgage for you from 1000's of deals
- You'll always get advice from a qualified mortgage expert
- Open 7 days a week including until 8pm on weekdays.
Call free on 0800 073 1936
See mortgage best buys >>